IT outsourcing is an effective alternative to having an in-house IT department. IT outsourcing started as a popular option for startups, but today everyone has used it, including such well-known companies as Apple, Amazon, Slack.
Outsourcing vs. in-house development is a question that many business owners have been considering lately. To choose the best option for yourself, the Wishdesk software development company offers you a detailed consideration of each of the options, including their pros and cons.
What is the difference between in-house and outsourced teams?
Often, business owners are faced with the agony of choosing an in-house or outsource web development company. More often than not, this is a real puzzle for them because they do not know the difference between the options or understand all the advantages and disadvantages of each of the approaches. So what is the difference?
- When you choose in-house it means that you will work with the in-house team.
- When you choose an outsource web development company, it means that you have a task for remote specialists.
Both approaches have advantages and disadvantages. In the current crisis conditions and constant lockdowns, more and more companies are choosing the second option. Read on to find out why.
What is in-house development?
In-house development is the development of your business website by your own staff. For example, let's say you are an IT-related company, and you wanted to add voice search on website. To do this, you need to appoint web developers and other specialists from the team that already works for you. But there is a nuance here. It may be that the staff that you work with is not competent in this matter. This is where the issue starts.
By choosing in-house web development options, you cannot get outside help, and you have to do the best you can to get less than ideal results. The success or failure of the final result depends only on you and your developers.
Advantages of in-house development
- you can teach your team everything you need
- they know the culture and goals of your company from the inside
- you are in direct communication with the development team
- you have no language boundaries
- in-house teams have a better understanding of the project requirements
Disadvantages of in-house development
- a tough recruitment process
- you need to spend a lot of money on staff training
- in-house staff in which you have invested money can leave you without completing the work, and then you need to start over
- your employees may not be experts at what you need them to do
- you have to pay insurance fees, rent, equipment expenses, holidays, etc.
- you should provide the necessary infrastructure for your workers
Alternatives to In-House Hiring for Developers
The fact that the world is being digitized as much as possible is no longer news. The news may be that finding a professional web developer to expand your staff is not that easy. Why? Because not all companies can pay under $5,500 per month to an employee and $4000 in administrative fees.
This is where the cheaper, but no less reliable, alternatives to hiring new in-house developers come to your aid:
- outsourcing web development company
- freelancing
Let's take a look at what advantages these options can bring you over in-house developers.
What is web development outsourcing?
Web development company outsourcing is the development of your business website by people outside your organization team. For example, let’s say you are tasked with adding a Drupal chatbot to your website. All you need to do is to hire the best web development agency — effectively, employees from another company. In the end, you save time, money, and hassle.
This is a great option as you can choose the best employees at an affordable price. You pay only for the completion of the task without taxes, since you do not need to register these workers as your own staff.
All you have to do is work out things like:
- who will oversee the project
- providing all the necessary access to your site
Advantages of outsourcing web development company
- the price for the execution is much lower than the work of in-house teams
- you get a professional in the field that you need
- you avoid hiring and staffing issues
- significantly shorter time to launch products
- outsource web development experts have extensive experience with similar projects like yours
Disadvantages of web development company outsourcing
- you need to learn how to choose the best web development company
- you will likely communicate with each other online
What is Freelancing?
Freelancing is just what it sounds like — hiring freelancers to accomplish the task. There are a lot of freelancers on the Internet.
However, not all of them are professional and reliable.
When you decide to hire a freelancer for your project, you are taking a risk. There are 3 main risks associated with hiring freelancers:
- they may disappear at any point and leave your project unfinished
- no one can guarantee the non-disclosure of your data by a freelancer
- the way a freelancer describes themselves does not always correspond to reality
We are not saying that freelance outsourcing is bad, just that to find good staff among freelancers, you need to spend twice as much time.
Advantages of freelancing
- relatively low price for services
- there are many freelancers on the net
Disadvantages of freelancing
- no one guarantees the completion of projects to the finish line
- finding a qualified freelancer is still a challenge
Fresh IT Outsourcing Software Development Statistics For 2021
We want to show you the hottest statistics for 2021 regarding outsourcing around the world.
- 54% of companies worldwide outsource
- $75.2 billion was spent on outsourcing security in 2020
- 78% of companies are satisfied with outsourcing cooperation
- The global outsourced customer experience market will increase to $81.5 billion by 2023
- $413.72 billion will be spent on external outsourcing by the end of 2021
- 55% of business owners plan to increase outsourcing for cybersecurity functions
Final thoughts on in-house development vs. development outsourcing
Which of the alternatives to hiring new in-house developers you choose is up to you, but we would recommend that you focus on web development company outsourcing. This option guarantees that you will receive the completed task quickly, on time, and at high quality. If you want to hire a professional Drupal development company, then you can do it now.
